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Introduction BRITISH HALLMARKING COUNCIL REPORT OF THE CHAIRMAN ‐ 2010 Last year I reported a continuing decline in the number of items marked ‐ down to 16,158,000 from the peak of 35,245,000 items in 2003. During 2010 the Assay Masters continued to report adverse trading conditions based on the same causes as in previous years, and in particular as a result of the very high price of gold which depressed sales of new items of jewellery. The outturn for 2010 was 14,926,518 for all items marked. This total indicates a further decline of about 8% on the 2009 total, and a decline of about 17% for gold items only. Within the total is a total of all palladium items marked of 107,322. This is a very encouraging result for the first full year of hallmarking. and confirms the attraction of palladium as an alloy for jewellery manufacture. The effect of the reduced volumes on the Assay Offices has been to continue emphasis on cutting costs, including labour costs. They have all taken action towards cost reduction, while at the same time retaining sufficient capability to perform their primary consumer protection function of testing and certifying the metal quality of jewellery before it is exposed for sale. In addition, all of the Offices have reported continuing support for the Trading Standards Departments in their work on monitoring and enforcing compliance with the law. Council regards this as important work, and, to back up the activities of the Assay Offices, Council has created an Education and Enforcement Committee during the year, chaired by Mike Drewry, the lead Trading Standards representative Council member. At the beginning of the year three new Government appointees joined the Council ‐ John Pearce (better known in jewellery circles as Johnny Rocket ), Bryn Aldridge and Robert Grice who both have considerable Trading Standards experience. In October, Richard Vanderpump, an appointee of the London Assay Office, retired from Council due to ill health, and Sir Jerry Wiggin, who while serving as an M.P. in 1973 sponsored the Hallmarking Bill in Parliament, succeeded him. Our new members have been warmly welcomed and have already made an impressive contribution to the Council’s deliberations. In the summer the Council was the subject of the new Government’s review of Non‐Departmental Public Bodies. Richard Sanders, the Director of Regulation at the National Measurement Office, carried out a detailed investigation most conscientiously and carefully, and the thanks of the Council are owing to him for that. The result of the review was that the Council not only survives, but does so with the prospect of an enhanced role following the passage of the Public Bodies Bill. Future role During the preparation of the response by the Council to the Government review, it was confirmed that the Council is certainly not a burden either on the public purse or on the Assay Offices or the UK jewellery trade. In fact, the opposite is true. So far as the public purse is concerned, the costs of the Council are met by the Assay Offices and no part of them is funded by the taxpayer. So far as the Offices and the UK trade is concerned, although the Council was set up some time ago, its constitution and regulatory approach is thoroughly modern, being consultative, risk‐based and light 1
touch. Council aims to support the work of the Offices, and the trade, and believes that the growth in demand for palladium articles following the change in the regime to include them is evidence of success. It is hoped that in future Council will be better able to achieve these aims as a result of playing a greater part in the updating of the technical aspects of the regime ‐ to be found in the schedules to the Hallmarking Act‐ so as to avoid the need for secondary legislation whenever a change is required. Council also hopes to be able to play a greater part in the representation of the UK at the International Hallmarking Convention. Discussions with the National Measurement Office about that will resume after the Public Bodies Act comes into force. Overseas Marking During the year, Council was consulted by the National Measurement Office on issues arising from hallmarking by the Dutch Waarborg Office in the Far East, and the steps to be taken by the Dutch Ministry of Foreign Affairs in supervising those activities. Progression of the policy of the Council adopted in 2009 that the Hallmarking Act should be changed to permit UK Assay Offices to assay and mark overseas was delayed during 2010, particularly by the effect of the general election and change of Government, and also by the Government review of non‐departmental public bodies. A revised draft of the impact assessment was produced, however, and is intended to be submitted to the National Measurement Office early in 2011. Component Marking At the request of the Assay Offices, the Applications Committee of the Council ‐ which has responsibility for approving applications for, and subsequently monitoring, onshore sub‐Offices ‐ drew up and obtained approval to a new procedure whereby Assay Offices can process jewellery in an offshore location ‐ typically manufacturers’ premises ‐ by specimen components being returned to the UK for testing and marking prior to their return to the remote location for assembly. The procedure was drawn up taking account of the potential risks arising from the various features of the process. UK sub‐Offices Birmingham Assay Office was given permission to open a sub Office at Domino in Birmingham during the year. Commemorative Marks Although the Council was unable to negotiate permission for a hallmark to commemorate the Olympic Games, The Queen has given permission for a hallmark to commemorate the Diamond Jubilee to be produced, and preparations for that are progressing well. Inspection by the Royal Mint. The Queen’s Assay Master has confirmed that the results of the inspections of all the Assay Offices in 2010 were satisfactory 2
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